Volume 29 (2018) / Issue 5
Irene-Marie Esser, Iain Macneil, Katarzyna Chalaczkiewicz-Ladna, 'Engaging Stakeholders in Corporate Decision-Making through Strategic Reporting: An Empirical Study of FTSE 100 Companies' (2018) 29 European Business Law Review, Issue 5, pp. 729–772
The strategic report is the latest iteration of non-financial reporting in the UK. This project empirically analyses the practical implications and relevance of the production of a strategic report for shareholders and especially other stakeholders (e.g. employees, customers, suppliers, environmental agencies, social, community, and human rights bodies). The strategic reports of the FTSE 100 companies from 2015 and 2016 are scrutinised, using a methodology involving compliance coding. This study is especially significant as the practical implications and relevance of the production of a strategic report by company directors have not been discussed in depth in prior literature. This paper fills this gap by first providing empirical evidence on compliance with the relevant statutory provisions. It sheds light on the manner in which companies consider environmental, social and governance (ESG) issues in decisionmaking and the extent to which disclosure represents an effective strategy for engaging stakeholders in that process. It also evaluates the type of information transferred from the company to stakeholders in the form of the strategic report. This first systematic review of strategic reporting in the UK carries international implications due to the high international shareholder base in FTSE 100 companies.
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